Table of contents
- What is a commodity CFD?
- Cash CFD and futures CFD aren't the same
- Why a "spot CFD" can follow the futures market
- Four commodity CFDs compared
- Gold CFD: the most established entry point
- Silver CFD: more than "gold with more speed"
- Oil CFD: WTI, Brent and the contract curve
- Natural gas CFD: small margin can meet big volatility
- Leverage, margin and the actual position size
- The costs that decide whether the strategy survives
- CFD vs futures, ETF/ETC and physical commodities
- How to assess a CFD provider for commodities
- A robust workflow before your first trade
- Common mistakes in commodity CFDs
- Conclusion
- Sources and further reading
- FAQ
Quick summaryWhat you should know about commodity CFDs
- You don't own the commodity — only a price contract with the provider.
- Gold has a maximum of 20:1 leverage for retail clients in the EEA, other commodities a maximum of 10:1.
- Many cash CFDs have no fixed expiry, but the price is often still derived from the futures curve.
- Contango and backwardation can affect the cost of holding the position, even with no visible expiry.
- Low margin is not low risk — the exposure is still the full notional size.
Commodities react to different drivers than individual stocks. Gold is influenced by real yields, the dollar and risk sentiment. Oil is priced through global production, transport, geopolitics and inventories. Silver is both a precious metal and an industrial metal, while natural gas can move violently on weather forecasts, inventory data and bottlenecks.
A CFD makes these markets accessible from a single trading account and with smaller positions than many standardised futures. Easy access, however, doesn't mean simple risk. Two products both called "Gold" or "US Oil" can have different terms.
What is a commodity CFD?
CFD stands for Contract for Difference. When you open a commodity CFD, you enter a bilateral agreement with the CFD provider. On closing, the difference between the entry and exit price is settled, adjusted for size and any costs.
You don't own physical gold, oil, silver or natural gas, normally have no right or obligation to take delivery, can buy or sell based on your expectation, post margin instead of the position's full notional value, and trade at the provider's buy and sell price.
Result = price change × number of units × value per unit − trading costs
The hard part is establishing what "one unit" represents, which reference price the CFD tracks, and which costs run while the trade is open. See CFD trading 2026 for a basic introduction.
Cash CFD and futures CFD aren't the same
The claim that commodity CFD "doesn't expire" is only partly true. Many providers have two models:
| Feature | Cash/spot CFD | Futures/forward CFD |
|---|---|---|
| Fixed expiry date | Normally no | Yes, or automatic rollover |
| Typical use | Short-term trading | Trading over weeks/against a contract month |
| Spread | Often narrower | Can be wider |
| Financing | Normally daily overnight | Often built into the forward price |
| Price basis | Synthetic cash price, often derived from futures | A specific futures contract |
Neither model is automatically cheapest. An intraday trader might prefer the narrower spread of the cash product. A trader who wants to hold the position for several weeks may find that the sum of daily costs makes a dated CFD or a futures contract more efficient.
Why a "spot CFD" can follow the futures market
Gold has a large physical spot market, but energy in particular is traded and priced through a range of futures contracts with different delivery months. A common method is to derive the cash CFD from two liquid futures months and gradually adjust the price toward the next contract.
This has three consequences: the CFD can have no visible expiry even though the price source has one, the cash CFD can diverge from the front-month futures price, and contango or backwardation can affect the economic result through price and financing adjustments.
In contango, later contracts trade higher than the nearest contract. In backwardation, they trade lower. Read contango and backwardation explained and roll yield for the full mechanics.
Four commodity CFDs compared
| Market | Key drivers | Max retail leverage in the EEA* | Particular risk |
|---|---|---|---|
| Gold | Real yields, USD, central banks | 20:1 | Macro shocks and dollar moves |
| Silver | Gold, USD, industry, solar energy | 10:1 | Dual precious-metal/industrial sensitivity |
| WTI/Brent oil | OPEC+, demand, inventories | 10:1 | Gaps, headlines and the contract curve |
| Natural gas | Weather, inventories, LNG, production | 10:1 | Weather-model shifts and extreme daily moves |
*Maximum leverage is not a promise of what a specific provider offers. Margin can be higher during volatility, ahead of weekends, or on individual products.
ESMA's product intervention measures set a maximum of 20:1 for gold and 10:1 for other commodities for retail clients, in addition to margin close-out and negative balance protection. ESMA's official overview summarises the limits.
Gold CFD: the most established entry point
Gold trades internationally in US dollars per troy ounce. A gold CFD normally tracks XAU/USD or a price derived from the global gold and futures market. You don't own bars and have no claim to physical delivery.
Gold is driven by US real yields and Fed expectations, the direction of the dollar, inflation and growth data, central bank gold purchases, geopolitical uncertainty, and flows of capital into funds and futures. Gold is often described as a safe haven, but there's no guarantee it rises when stocks fall.
Retail margin can be as low as five percent at the maximum permitted leverage of 20:1. A position worth €100,000 would then require €5,000 in margin, but a three percent price move produces roughly €3,000 in gain or loss before costs. The exposure is still €100,000. For a central order book and standardised tick, gold futures may be more relevant.
Silver CFD: more than "gold with more speed"
Silver reacts to many of the same macro drivers as gold, but industrial demand plays a bigger role. Electronics, solar energy, the auto industry and the business cycle can therefore pull silver in a different direction from gold. A percentage daily move that's unusual in gold can be normal in silver.
Maximum retail leverage is normally 10:1, equivalent to at least ten percent initial margin. See also silver futures for the difference versus the COMEX market.
Oil CFD: WTI, Brent and the contract curve
"Oil" is not a single price. WTI is the American reference, while Brent is the leading global seaborne reference. CFD names like US Oil and UK Oil often refer to these, but you need to check the reference and pricing method.
Key drivers include OPEC+ production and communication, US production, weekly inventory data from the EIA and API, global transport and refinery demand, war and supply disruptions, and driving and heating season.
Example: you buy a CFD equivalent to 100 barrels of WTI at $80. Notional value is $8,000. With 10:1 leverage, at least $800 in margin is required. If WTI falls two dollars, the gross loss is $200 before spread and financing. The margin was $800; the risk was determined by 100 barrels. For standardised contracts, see oil futures.
Natural gas CFD: small margin can meet big volatility
Natural gas is a regional market. A CFD called Natural Gas often refers to US Henry Hub, not European TTF. Key drivers include temperature forecasts, Thursday-afternoon EIA inventory data, production and LNG terminals, and hurricanes and cold snaps.
Natural gas can move double digits in percentage terms during periods of stress. A fixed stop can fill significantly worse on a gap. Leverage should therefore often stay far below what the account technically allows. See natural gas futures for the Henry Hub contract and seasonal patterns.
Leverage, margin and the actual position size
Margin is collateral, not maximum risk. Always use notional exposure in your calculation. Assume one CFD unit equals one troy ounce, the gold price is $2,500, and you buy four units: notional exposure $10,000, margin at 20:1 is $500, loss on a $25 drop per ounce is $100.
Number of units = desired account risk / (stop distance × value per price point)
If you have €50,000 in the account, are willing to risk 0.5 percent, and the stop represents €50 per unit, the maximum size is 250 / 50 = 5 units. See leverage and margin in CFD trading for more calculations.
The costs that decide whether the strategy survives
Spread is the distance between the buy and sell price. It can widen around key data, inventory reports and weekends. Commission applies to some account types — "commission-free" doesn't mean cost-free. Overnight financing is built on cost of carry plus an administration markup; the rate and model vary between providers. Rollover and basis adjustment can affect the cash posting at a contract switch. Currency conversion creates an indirect effect even though the commodity price is quoted in dollars.
Read the full cost picture in CFD costs 2026.
CFD vs futures, ETF/ETC and physical commodities
| Factor | Commodity CFD | Commodity futures | Physical metal |
|---|---|---|---|
| Ownership | No | Contract position | Yes |
| Short | Normally simple | Yes | Difficult |
| Leverage | Built-in margin | Futures margin | No |
| Expiry | Cash often no | Yes | No |
| Pricing venue | OTC with provider | Central exchange | Dealer/market |
CFD is often most practical for short-term, small and leveraged exposure. Futures can suit better when a central order book and standardisation are decisive. Read CFD vs futures before choosing your instrument.
How to assess a CFD provider for commodities
Don't compare only the advertised spread. Check the legal entity and supervisory authority, the product's reference (spot, front future, synthetic cash or dated contract), unit value, normal and typical spread, financing formula, trading hours, execution and risk tools.
Skilling for commodity CFD
Skilling is relevant for European traders who want to trade gold, oil and other commodity CFDs with BankID and local customer support. Remember that CFDs are complex, leveraged instruments carrying a high level of risk.
Availability and terms depend on country, client category and legal entity. Compare current terms in best CFD brokers before you open an account.
A robust workflow before your first trade
- Choose one commodity and learn its calendar, reports and active hours.
- Find the product sheet and note the reference contract, unit value and financing cut-off.
- Calculate the loss in your account currency at your stop before looking at required margin.
- Check the economic calendar; don't be surprised by CPI, the Fed, EIA or OPEC+.
- Expect slippage on stops around gaps and news shocks.
- Start on demo or with the smallest practical size.
Common mistakes in commodity CFDs
Believing "spot" means the physical spot price. The product can be a continuous price derived from futures. Ignoring the curve. Contango and backwardation can affect the holding cost even with no visible expiry. Using maximum leverage. Low margin doesn't change the commodity's volatility. Trading all commodities the same way. Gold, oil and natural gas have different events and liquidity. Holding a cash CFD for months without a cost budget. Small daily amounts can become the strategy's biggest friction. Comparing only spread. Unit value, financing and execution can matter more.
Conclusion: flexibility must be measured against friction
Commodity CFD can give precise, small exposure to gold, oil, silver and natural gas without physical delivery or a standardised futures contract. The biggest advantage is flexibility. The biggest trap is mistaking simple order placement for a simple product.
Gold stands out with a lower regulatory margin requirement and strong macro sensitivity. Silver combines precious metal and industry. Oil requires understanding WTI, Brent, inventories and OPEC+. Natural gas requires extra respect for weather, season and extreme moves.
Risk warning: CFDs are complex instruments with a high risk of rapid losses due to leverage.
Sources and further reading
- ESMA: restrictions on CFDs for retail clients
- ESMA: assessment of Norwegian product intervention measures for CFDs
- CME Group: energy and metals markets
BestFutures may receive compensation if you open an account via certain links. This doesn't affect our assessment criteria. CFDs are complex instruments and carry a high risk of rapid losses due to leverage. This is general information, not personal investment, tax or legal advice.
Frequently asked questions about commodity CFD
Short answers on ownership, leverage, expiry and risk for gold, oil, silver and natural gas CFD.
Yes. You trade the price change in a contract with the provider. You don't get ownership of bars or coins.
A cash/spot CFD normally has no fixed expiry. A futures or forward CFD can have an expiry or automatic rollover.
Normally 20:1 on gold, equivalent to five percent initial margin, for retail clients under relevant European/EEA rules.
A maximum of 10:1 for retail clients, equivalent to at least ten percent initial margin.
No. The CFD is an OTC product that can reference WTI futures, but size, price and counterparty are different.
Qualified retail clients under the EEA regime have negative balance protection on the CFD account. You can still lose all the funds on the account quickly.
No leveraged CFD is a natural beginner product. Gold often has deep liquidity, but it can still move quickly.
Often not. Daily financing, curve adjustments and the counterparty structure can make a cash CFD inefficient over a long period.